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"Should you start to see the U.S. data continuing to be solid, particularly now with emerging markets finding a more stable footing, we might see the dollar starting to regain its poise if the market starts to price in some expectation that the Fed could still go in December."
- ANZ (based on Bloomberg)
Pair's Outlook
The British currency was unable to pierce the resistance cluster at 1.5485, ultimately suffering a 34-pip decline. Not much has changed over the weekend. Technical indicators remain unchanged, but the resistance cluster strengthened, as the Bollinger band is now bolstering it. At the same time, immediate support is now represented by the 55-day SMA and the weekly PP around 1.54, creating more space for a possible decline today. Even though the Cable is expected to remain flat, a correction is still expected, pushing the pair several pips higher.
Traders' Sentiment
Bulls keep retreating, as only 53% of all positions are now long. Meanwhile, the number of buy orders increased from 29 to 36%.
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